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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 03-21-2002MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY March 21, 2002 PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, Tim Bildsoe, Sandy Hewitt and Leon Michlitsch ABSENT: None STAFF PRESENT: Executive Director Anne Hurlburt, Housing Manager Jim Barnes, and Office Support Representative Barb Peterson OTHERS PRESENT: Jodi Boedigheimer, Grace Management Representative 1. CALL TO ORDER A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair Henderson on March 21, 2002 at 7:05 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe, recommending approval of the February 21, 2002 minutes. Vote. 5 Ayes. Motion approved unanimously. 3. CONSENT AGENDA Commissioner Hewitt requested that the Plymouth Towne Square Monthly Report be pulled from the consent agenda for discussion. A. Plymouth Towne Square Monthly Report Commissioner Hewitt inquired about the roof leak noted in the PTS monthly report and asked if it was from the original roof problem. Housing Manager Barnes said that it is and the problem is that two roofs come together into a valley and without much sun in that area, the snow backs up past the ice and water shield. He said that following installation of heat tape the problem should be corrected. Commissioner Hewitt asked if it was the same apartment that had a leakage problem last year. Housing Manager Barnes said it is one of them that received attention last year. Commissioner Hewitt asked if there is a plan in place if the heat tape or the roof saddle doesn’t work. Housing Manager Barnes said we do not. Ms. Boedigheimer asked if SELA Roofing is installing insulation. Housing Manager Barnes stated that we are not addressing the insulation issue at this time. Commissioner Hewitt inquired if a refund for the inconvenience of the leakage should be given to the apartment resident. Housing Manager Barnes said the leakage Plymouth Housing and Redevelopment Authority March 21, 2002 Page 2 has not been that extensive and no personal belongings have been damaged. He said we will continue to monitor the situation. Commissioner Hewitt inquired about the bonds issued for Plymouth Towne Square. Director Hurlburt replied that the HRA’s finances of Plymouth Towne Square was handled as a private placement with the City becoming the Bond Holder. The HRA is obligated to pay the principle and interest on the Bonds. Commissioner Bildsoe inquired as to how many garage spaces there are at PTS. Ms. Boedigheimer said there are approximately 60 stalls. She added they have all been rented until recently. Options for rental of the unused stalls were discussed but will not be pursued due to security and liability reasons. Ms. Boedigheimer said she believes the problem will correct itself when the two bedroom units are filled. Commissioner Ludovissie suggested that we monitor the situation closely and stated that he prefers rental for the residents’ use only. MOTION by Commissioner Bildsoe, seconded by Commissioner Hewitt, approving the Plymouth Towne Square monthly report. Vote. 5 Ayes. Motion adopted unanimously. 4A. Plymouth Towne Square 2002 Revised Budget Housing Manager Barnes stated that the recommended changes to the budget have been made. He explained that on the expenditure side an adjustment was made in salaries of ($25,114) reflecting the reduction of one full time employee. He also noted that two adjustments were made in the Add Back Non-Cash Items category. The first item, an error in the Reserve Replacement line item was corrected on the spreadsheet and the $49,500 shown is now the correct amount. The second adjustment in this category was the removal of the replacement of the sidewalk that is deteriorating and $10,000 was added back in. The sidewalk was repaired rather than replaced. Housing Manager Barnes explained that in the memo of November 15, 2001 the amount of funds that was to be transferred from reserves to have a balanced budget was incorrect. The shortfall reported was ($13,855), but after further review and taking into consideration the changes in expenditures, the shortfall is now approximately ($41,466). He explained that the reserve accounts currently have a balance in excess of $418,116, so there are sufficient funds to cover the deficit. Housing Manager Barnes said that the rents will decrease by approximately $2,000 for the 2002 budget. Commissioner Ludovissie asked why the rent amount is now lower than originally predicted. Director Hurlburt explained that even by using a 35% standard some tenants would still see a decrease. She stated that this figure could change once staff has recertified the resident’s income based on changes made to the rent structure. Chair Henderson asked if those are the only line items that changed. Housing Manager Barnes replied affirmatively. Plymouth Housing and Redevelopment Authority March 21, 2002 Page 3 MOTION by Commissioner Hewitt, seconded by Commissioner Ludovissie, to approve the revised 2002 operating budget for Plymouth Towne Square. Vote. 5 Ayes. Motion adopted unanimously. 4B. Proposed Changes to Plymouth Towne Square Admissions and Occupancy Handbook Transition Timeline Housing Manager Barnes stated that the revised Plymouth Towne Square Admissions and Occupancy Handbook is enclosed in both a redlined version as well as a clean copy. Chair Henderson asked if the handbook is issued to residents. Director Hurlburt replied that it is not and explained that this handbook is the Plymouth HRA’s directive to the management company. Housing Manager Barnes explained the new full rents and minimum rents. Minimum rents have been set at $200 for a one bedroom unit and $300 for a two bedroom unit. Full market rents are 782 for a one bedroom unit and $1,001 for a two bedroom unit. We will now use 35% of their adjusted monthly income, less a utility allowance to determine the residents’ portion of the rent collected. Housing Manager Barnes stated that 5% will now be used for determining income on assets that are greater than $5,000. This is an increase from 3%, which was the previous policy on calculating assets. For amounts less than $5,000, actual income earned on the assets will be used. Housing Manager Barnes explained the new policy relating to single persons occupying two bedroom units. A single person will be required to move to a one bedroom unit based on either their willingness to do so or their position on the waiting list, which will be determined by a lottery drawing. If they decline to move when it is their turn, within a 60 day time period, and no one else on the list elects to move, their rent will be adjusted to full market rent for two bedroom units. Housing Manager Barnes stated that the implementation date will be September 1, 2002 for existing residents. The rent structure for new residents and the policy regarding singles occupying two bedroom units will be effective April 1, 2002. Commissioner Hewitt asked what the turnover rate has been for one bedroom units in the last year. Housing Manager Barnes stated that 8 one bedroom units turned over last year. He said that in the next few years there could be more than 8-10 units per year due to the aging of residents. Commissioner Hewitt asked if the waiting list could start with very low subsidies. Director Hurlburt explained that very low subsidies will not be in effect after Sept. 1, so it will be on a volunteer basis and then by lottery. She also explained that residents moving from two bedroom units into one bedroom units would be eligible for assistance from Plymouth Towne Square for incidental moving expenses. Commissioner Hewitt asked about the time frame for moving from two bedrooms to one bedroom units. Director Hurlburt said the policy would be put into effect right away. Plymouth Housing and Redevelopment Authority March 21, 2002 Page 4 Commissioner Hewitt stated that the current levels of subsidy exist until Sept. 1, 2002 and inquired as to how the rent system will work until then. Ms. Boedigheimer asked if they can start with the very low subsidies since there is an in house waiting list for those. Director Hurlburt said that we should leave everyone at the level they are at until the recertification process is completed. Ms. Boedigheimer asked if the Sept. 1, 2002, date is for all residents with no exceptions. Director Hurlburt replied affirmatively. Commissioner Ludovissie asked about the pet policy, inquired as to how many pets there are in the building, and if the security deposit should be increased. Ms. Boedigheimer said there are at least five cats and one bird. Ms. Boedigheimer said there is a deposit fee and sometimes a monthly fee for a pet at other apartment complexes that Grace Management oversees. She stated there is a limit of one pet per apartment at PTS. Director Hurlburt asked if pets are being registered when recertifcations are performed or lease renewals are done. Director Hurlburt suggested adding language to the pet policy that all pets need to be licensed with the City. Commissioner Ludovissie stated that he felt the interim recertification requirement of reporting income changes of $40 or more per month was too low. Housing Manager Barnes explained that the figure was based on Section 8 guidelines and we are trying to keep the policies for PTS as close to the Section 8 policies as possible. Chair Henderson asked how the Admissions and Occupancy Handbook could be constructed so it would not have to be revised every time the rents are changed. She suggested putting all time dated information into an appendix. She also inquired about the referral to HUD under Computation of Annual Income and asked if it was a good idea to tie the HRA to HUD numbers. Director Hurlburt said it is based on the annual changes in median income as determined by HUD. Chair Henderson inquired about the section on Page 8 of the red-lined version referring to Unit Size and Minimum Rents**. She said the asterisks should be crossed out. Chair Henderson suggested moving rent data to an appendix. Director Hurlburt stated that the information is easier to read and follow in this format until the recertification process is finished. She also stated this handbook is for the use of the manager and she is familiar with that format. Chair Henderson stated that Page 25 of the red-lined edition really ties us into using HUD Section 8 rents and wondered if that is what we really want. Director Hurlburt said we could change the definition to read “as determined by the HRA”. Housing Manager Barnes said the final changes would be made after the recertification process has been completed. Discussion was held on Section 8 Fair Market Rent (FMR) limits. Commissioner Ludovissie asked if there is a need to keep the Section 8 limits and whether rents would get too low for residents to qualify. Director Hurlburt said they would not get too low but they could get too high. She said if we remove the item regarding Section 8 FMR’s then the Board would need to act on the changes each year in order to adjust the numbers for Plymouth Towne Square. Chair Plymouth Housing and Redevelopment Authority March 21, 2002 Page 5 Henderson asked if the HRA would want to be involved in the rent changes each year. Director Hurlburt said another option would be to say the rents will be determined by the HRA to be effective in a designated month each year. Housing Manager Barnes asked when the rent survey is done. Director Hurlburt stated that it is done in August or September, but it is usually October before the new FMR’s are approved. The Board decided that rents would be updated in January, beginning in 2004 and that the language in the Admission and Occupancy Handbook should state that the HRA will determine the Fair Market Rents for PTS. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, approving the revised Plymouth Towne Square Admissions and Occupancy Handbook. Vote. 5 Ayes. Motion approved unanimously. Other Business: Housing Manager Barnes explained the handout, which was distributed before the meeting. It refers to the Metropolitan Housing Opportunity Program (MHOP) units, which were previously discussed. He said there will only be 10 units rather than 20. The HRA is not required to be a party to the agreement. The Met Council is confident they will find units in Plymouth to meet their criteria. Commissioner Hewitt asked if the Met Council chose to change it to 10 units. Housing Manager Barnes replied yes and it was because they did not have enough funding to complete 20 units at this time. Commissioner Ludovissie complimented the staff on the housing forum. Director Hurlburt said that feedback has been positive. Discussion followed regarding the housing forum. Commissioner Bildsoe suggested talking about how to handle the sale of Bassett Creek Townhomes and the HRA’s right of first refusal at the next meeting, and Housing Manager Barnes said they would make sure it was on the agenda. 5. Adjournment Meeting adjourned at 8:15. HRA/Minutes/3/21/02